Debt and Other Obligations

Debt Outstanding

Total debt outstanding at June 30, 2016, and September 30, 2015, consisted of the following:



Debt Outstanding
	At June 30, 2016			At September 30, 2015
Short-term debt
Short-term debt, net	$	1,542		$	1,034
Current maturities of power bonds	555			32
Current maturities of long-term debt of variable interest entities	34			33
Total current debt outstanding, net	2,131			1,099
Long-term debt
Long-term power bonds⁽¹⁾	22,125			22,792
Long-term debt of variable interest entities	1,229			1,246
Unamortized discounts, premiums, issue costs, and other	(177		)	(188		)
Total long-term debt, net	23,177			23,850
Total outstanding debt	$	25,308		$	24,949

Note

(1) Includes net exchange gain from currency transactions of $130 million at June 30, 2016, and $21 million at September 30, 2015.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2015, to June 30, 2016:



Debt Securities Activity
	Date	Amount⁽¹⁾		Interest Rate

Redemptions/Maturities
electronotes^®	First Quarter 2016	$	1	2.65	%
electronotes^®	Second Quarter 2016	2		3.51	%
electronotes^®	Third Quarter 2016	3		2.97	%
2009 Series A	November 2015	2		2.25	%
2009 Series B	December 2015	1		3.77	%
2009 Series B	June 2016	26		3.77	%
Total redemptions/maturities of power bonds		35
Variable interest entities		16		4.30	%
Total redemptions/maturities of debt		$	51

Note

(1) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2016 with a maturity date of September 30, 2016. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the United States with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at June 30, 2016. The availability of this credit facility may be impacted by how the U.S. government addresses the situation of approaching its debt limit.

TVA also has funding available in the form of three long-term revolving credit facilities totaling $2.5 billion. The $500 million credit facility matures on February 1, 2020, one $1.0 billion credit facility matures on June 2, 2020, and another $1.0 billion credit facility matures on September 30, 2020. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured long-term non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.5 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured long-term non-credit-enhanced debt. At June 30, 2016 and September 30, 2015, there were approximately $1.2 billion and $1.1 billion, respectively, of letters of credit outstanding under the facilities. See Note 12 — Other Derivative Instruments — Collateral.

The following table provides additional information regarding TVA's funding available in the form of three long-term credit facilities:



Summary of Long-Term Credit Facilities At June 30, 2016 (in billions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
February 2020	$	0.5	$	0.5	$	—	$	—
June 2020	1.0		0.4		—		0.6
September 2020	1.0		0.3		—		0.7
Total	$	2.5	$	1.2	$	—	$	1.3

Lease/Leaseback Obligations

Prior to 2004, TVA received approximately $945 million in proceeds by entering into lease/leaseback transactions for 24 new peaking combustion turbine units. TVA also received approximately $389 million in proceeds by entering into lease/leaseback transactions for qualified technological equipment and software in 2003. Due to TVA's continuing involvement in the operation and maintenance of the leased units and equipment and its control over the distribution of power produced by the combustion turbine facilities during the leaseback term, TVA accounted for the lease proceeds as financing obligations. At June 30, 2016, and September 30, 2015, the outstanding lease/leaseback obligations were $538 million and $616 million, respectively.

On May 26, 2016, TVA provided a notice of intent to exercise its right of first refusal ("ROFR") to acquire for $56 million the equity interest in a certain special purpose entity ("SPE") created for the purpose of facilitating lease/leaseback arrangements. See also Note 17 — Subsequent Events.